NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Wall Street edges back from its record highs

U.S. stocks edged back from their records as financial markets around the world took a pause following big recent moves.

apnews.com

Wall Street edges back from its record highs​

By STAN CHOE
Updated 7:02 AM GMT+10, September 26, 2024

NEW YORK (AP) — U.S. stocks edged back from their records Wednesday as financial markets around the world took a pause following big recent moves.

The S&P 500 slipped 0.2% a day after setting an all-time high for the 41st time this year. The Dow Jones Industrial Average dropped 293 points, or 0.7%, after likewise setting a record the day before, while the Nasdaq composite edged up by less than 0.1%.

Treasury yields ticked higher in the bond market after sinking the prior day on a surprisingly weak update on confidence among U.S. consumers. The worst drop in three years raised worries about the U.S. economy’s strength, but it also raised expectations for the Federal Reserve to deliver another dose of bigger-than-usual relief through a big cut to interest rates at its next meeting.

The drop may also not be as bad as it looks, at least for financial markets. The worst losses in confidence have been concentrated among lower-income households, who have had to put more purchases on credit cards, according to Jack Ablin, chief investment officer at Cresset. But when it comes to the economy, and potential profits for companies, top earners account for more spending on non-essentials, and their confidence appears to be holding up better.

In stock markets abroad, indexes moved more modestly after jumping the day before on hopes that new stimulus measures from China would prop up the world’s second-largest economy. Chinese indexes rose again Wednesday, but they pared their gains as the day progressed, while European indexes slipped. Prices for crude oil also gave back gains.

On Wall Street, Stitch Fix tumbled 39.5% after the online fashion styling service said its revenue in the current quarter could be 15% to 17% weaker than a year earlier. Its stock has dropped below $3 from $100 early in the pandemic.

KB Home fell 45.4% after reporting profit for the latest quarter that was just shy of analysts’ expectations. The homebuilder, though, said orders picked up in August as mortgage rates came down.

A separate report released Wednesday morning said sales of new homes across the country slowed in August, but not by as much as economists feared.

The next date on the calendar circled for a potentially big market move is next week, when the latest monthly update on the U.S. job market will arrive. Slowing hiring in the world’s largest economy has become the top concern among investors, now that inflation has eased significantly from its peak two summers ago.

While the number of layoffs remains relatively low, U.S. employers are also more hesitant to hire. Critics worry the job market could weaken further as the cumulative effects of all the past hikes to interest rates made by the Federal Reserve show themselves.

The Fed kept its main interest rate at a two-decade high for more than a year in hopes of slowing the U.S. economy enough to stifle inflation. Last week, it swung toward protecting the job market by cutting the federal funds rate by a larger-than-usual half of a percentage point. Critics say it may be moving too late.

A strong job market would help Cintas, which provides uniforms, fire extinguishers and other products to businesses. It rose 1.2% after reporting stronger profit for the latest quarter than analysts expected. Cintas also increased its forecasts for profit and revenue over the full fiscal year.

Trump Media & Technology Group jumped 10.5% for its first back-to-back gain in two weeks. The stock had been struggling amid speculation about whether former President Donald Trump would sell some of his shares in the company behind the Truth Social network, now that he is free to do so.

All told, the S&P 500 fell 10.67 points to 5,722.26. The Dow dipped 293.47 to 41,914.75, and the Nasdaq composite added 7.68 to 18,082.21.

In the bond market, the yield on the 10-year Treasury rose to 3.78% from 3.73% late Tuesday. The two-year yield, which moves more closely with expectations for the Fed, rose to 3.56% from 3.54%.

Traders are betting on a roughly 60% probability the Federal Reserve will deliver another cut of half of a percentage point at its next meeting in November, according to data from CME Group. The Fed has traditionally moved rates by only a quarter of a percentage point at a time.

In stock markets abroad, indexes rose 1.2% in Shanghai, fell 1.3% in South Korea and slipped 0.2% in London.

ASX 200 expected to edge higher
It looks set to be a good session for Aussie investors on Thursday despite a mixed night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher this morning.

U.S. stocks edged back from their records Wednesday as financial markets around the world took a pause following big recent moves.

The S&P 500 slipped 0.2% a day after setting an all-time high for the 41st time this year. The Dow Jones Industrial Average dropped 293 points, or 0.7%, after likewise setting a record the day before, while the Nasdaq composite edged up by less than 0.1%.

All told, the S&P 500 fell 10.67 points to 5,722.26. The Dow dipped 293.47 to 41,914.75, and the Nasdaq composite added 7.68 to 18,082.21.

 

[bigdog]

Stock market today: Wall Street ticks to another record as stocks worldwide rally

U.S. stocks rose to another record as financial markets around the world rallied again. The S&P 500 added 0.4% Thursday to set an all-time high for the third time this week.

apnews.com

Wall Street ticks to another record as stocks worldwide rally​

By STAN CHOE
Updated 7:12 AM GMT+10, September 27, 2024

NEW YORK (AP) — U.S. stocks rose to another record Thursday as financial markets around the world rallied again.

The S&P 500 added 0.4% to set an all-time high for the third time this week and the 42nd time this year. The Dow Jones Industrial Average gained 260 points, or 0.6%, to finish just shy of its record, while the Nasdaq composite rose 0.6%.

Micron Technology led the way with a jump of 14.7% after the maker of computer memory and storage products delivered stronger profit for the latest quarter than analysts expected. It benefited from sales related to artificial-intelligence technology, where a boom has helped drive some stocks to astounding heights.

Jabil climbed 11.7% after the electronics manufacturer likewise reported stronger profit and revenue than expected. It also announced a plan to plow cash to its shareholders by buying back up to $1 billion of its stock.
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But drops for Exxon Mobil and other oil-and-gas companies kept the market’s gains in check. Oil prices sank after The Financial Times reported through sources that Saudi Arabia is preparing to abandon its unofficial price target of $100 a barrel for crude.

The price of a barrel of benchmark U.S. crude fell 2.9% to settle at $67.67, while the international standard of Brent crude fell 2.5% to $71.60. That dragged Exxon Mobil’s stock down 1.7%, and it was one of the heaviest weights on the S&P 500. ConocoPhillips sank 3.2%.

The biggest drop in the S&P 500 hit Super Micro Computer, which gave back some of its huge gains after more than tripling last year amid the AI frenzy. Its stock tumbled 12.2% following a report from The Wall Street Journal saying the U.S. Department of Justice is probing the seller of servers and storage systems. The company declined to comment.

A prominent investor, Hindenburg Research, published a report in August that accused the company of accounting red flags and other issues, which CEO Charles Liang later said contained false or inaccurate statements.

All told, the S&P 500 rose 23.11 points to 5,745.37. The Dow rose 260.36 to 42,175.11, and the Nasdaq composite gained 108.09 to 18,190.29.

In stock markets overseas, indexes were more buoyant on hopes for more moves by China to prop up the world’s second-largest economy. The country’s powerful Politburo on Thursday called for intensified efforts as China tries to meet its goals for economic growth, according to the official Xinhua News Agency.

That follows a raft of announcements earlier in the week by the country’s central bank that had also sent global markets jumping. China’s economic growth has been flagging, and officials appear to be making a more coordinated effort following earlier piecemeal attempts to boost it.

In the United States, meanwhile, more encouraging news came after a round of reports on Thursday suggested the world’s largest economy may be doing better than expected.

Fewer U.S. workers applied for unemployment benefits last week in the latest signal that layoffs remain relatively low across the economy. A separate report said the overall U.S. economy grew at a 3% annual rate during the spring, as previously estimated. That’s a solid rate.

The hope on Wall Street is for a form of financial nirvana where the U.S. economy’s growth can hold steady and keep profits for companies humming while the Federal Reserve continues to lower interest rates.

The Fed last week made a drastic turn in how it sets interest rates. It’s now cutting them to make things easier for the U.S. economy after keeping rates high for years in hopes of extinguishing high inflation. Lower rates not only make it less expensive to borrow money to buy a house, a car or things on credit cards, they can also boost prices for all kinds of investments.

The fear is that the job market could weaken further as the cumulative effects of all the Fed’s past hikes to interest rates show themselves. The Fed had earlier kept its main interest rate at a two-decade high for more than a year, and U.S. employers have already begun to slow their hiring.

Many traders on Wall Street are betting the Fed will end up cutting interest rates more deeply this year than officials have indicated. But if economic reports remain strong and keep topping expectations, the Fed may not end up cutting as much as investors are betting. That could make the U.S. stock market, which critics say already looks too expensive, look even pricier.

In the bond market, the yield on the 10-year Treasury remained at 3.79%, where it was late Wednesday. The two-year yield, which more closely follows expectations for what the Federal Reserve will do with short-term interest rates, rose to 3.62% from 3.56%.

In stock markets abroad, jumps of 4.2% in Hong Kong and 3.6% in Shanghai led the way. Indexes also climbed 2.8% in Japan, 2.3% in France and 1.7% in Germany.

South Korean stocks jumped 2.9%, led by semiconductor maker SK Hynix, which launched production of a new memory chip for artificial intelligence.

ASX 200 expected to rise again​

The Australian share market looks set to rise again on Friday following a good session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 19 points or 0.2% higher this morning.
U.S. stocks rose to another record Thursday as financial markets around the world rallied again.

The S&P 500 added 0.4% to set an all-time high for the third time this week and the 42nd time this year. The Dow Jones Industrial Average gained 260 points, or 0.6%, to finish just shy of its record, while the Nasdaq composite rose 0.6%.

All told, the S&P 500 rose 23.11 points to 5,745.37. The Dow rose 260.36 to 42,175.11, and the Nasdaq composite gained 108.09 to 18,190.29.

 

[bigdog]

Stock market today: Dow sets a record as Wall Street drifts to the finish of another winning week

U.S. stocks closed another record-setting week with a muted performance. The S&P 500 edged down by 0.1% Friday from its all-time high set the day before, its 42nd of the year so far.

apnews.com

Dow sets a record as Wall Street drifts to the finish of another winning week​

By STAN CHOE
Updated 7:19 AM GMT+10, September 28, 2024

NEW YORK (AP) — U.S. stocks closed another record-setting week with a muted performance Friday, as hope built on Wall Street that the U.S. economy can manage the rare feat of suppressing high inflation without causing a recession.

The S&P 500 edged down by 0.1% from its all-time high set the day before, its 42nd of the year so far. The Dow Jones Industrial Average rose 137 points, or 0.3%, to set its own record, while the Nasdaq composite slipped 0.4%.

Treasury yields eased in the bond market after a report showed inflation slowed in August by a bit more than economists expected. It echoed similar numbers from earlier in the month about inflation, but Friday’s report has resonance because it’s the measure that officials at the Federal Reserve prefer to use.

For more than a year, the Fed had kept its main interest rate at a two-decade high in hopes of slowing the economy enough to drive inflation toward its 2% target. Now that inflation has eased substantially from its peak two summers ago, the Fed has begun cutting rates to ease conditions for the slowing job market and prevent a recession.

Of course, the risk of a downturn still looms. U.S. employers have slowed their hiring, and the inflation report on Friday also showed growth in U.S. consumer spending in August fell shy of economists’ expectations. That’s important because consumer spending is the main engine of the economy.

Part of the shortfall may have been because incomes for Americans grew less in August than economists expected. As the Federal Reserve cuts interest rates, Americans will get lower interest payments on their savings accounts and other similar holdings.

The boost that lower interest rates can give to borrowers, meanwhile, can take longer to come to fruition, “so consumption spending will likely get squeezed,” said Brian Jacobsen, chief economist at Annex Wealth Management.

More encouraging data arrived later in the morning, when a report said sentiment among U.S. consumers is stronger than economists expected.

On Wall Street, Costco Wholesale fell 1.8% after delivering weaker revenue in the latest quarter than analysts expected. That was even though its profit topped expectations.

Another company that depends on people spending money, ski-resort operator Vail Resorts, sank 3.9% after reporting a larger loss for the latest quarter than analysts expected. Scant snowfalls at its Australian resorts hurt its results, and it gave a forecast for profit in its upcoming fiscal year that fell short of forecasts.

On the winning side of Wall Street, Bristol-Myers Squibb rose 1.6% after receiving U.S. federal approval for its new approach to treat schizophrenia in adults.

Trump Media & Technology Group climbed 5.5% following the first disclosure of a major investor selling its shares now that a restriction for insiders has lifted.

A Florida firm owned by former contestants on “The Apprentice” dumped nearly all of its 5.5% ownership stake in TMTG, which owns former president Donald Trump’s Truth Social platform, according to a filing made with U.S. regulators on Thursday..

Trump has said he does not plan to sell any of his shares, and he owns more than half of the company, but the stock has been shaky amid speculation about whether he may.

All told, the S&P 500 slipped 7.20 points to 5,738.17, but it still closed out a third straight winning week and its sixth in the last seven. The Dow rose 137.89 to 42,313.00, and the Nasdaq composite lost 70.70 to 18,119.59.

Markets overseas made bigger moves, as stocks in Shanghai rallied 2.9% to close their best week since 2008. Hong Kong’s Hang Seng jumped 3.6% to cap its best week since 1998.

They soared following a barrage of announcements through the week from China’s central bank and government in hopes of propping up the world’s second-largest economy. Investors aren’t convinced all the stimulus will ultimately succeed, but they say they’re impressed by the size of it all following earlier piecemeal efforts.

In the bond market, the yield on the 10-year U.S. Treasury eased to 3.75% from 3.80% late Thursday.

The two-year Treasury yield, which moves more closely with expectations for what the Fed will do with short-term rates, fell to 3.56% from 3.63%.

Traders are betting on a 55% probability the Fed will cut the federal funds rate by another half of a percentage point at its next meeting in November, according to data from CME Group. It usually moves rates by just a quarter of a percentage point.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to rise on Monday despite a mixed finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher.

U.S. stocks closed another record-setting week with a muted performance Friday, as hope built on Wall Street that the U.S. economy can manage the rare feat of suppressing high inflation without causing a recession.

The S&P 500 edged down by 0.1% from its all-time high set the day before, its 42nd of the year so far. The Dow Jones Industrial Average rose 137 points, or 0.3%, to set its own record, while the Nasdaq composite slipped 0.4%.

All told, the S&P 500 slipped 7.20 points to 5,738.17, but it still closed out a third straight winning week and its sixth in the last seven. The Dow rose 137.89 to 42,313.00, and the Nasdaq composite lost 70.70 to 18,119.59.

 

[bigdog]

Stock market today: Wall Street sets more records to close a winning September and third quarter

Wall Street closed its latest winning month and quarter with more records. The S&P 500 climbed 0.4% Monday to an all-time high.

apnews.com

Wall Street sets more records to close a winning September and third quarter​

By STAN CHOE
Updated 7:07 AM GMT+10, October 1, 2024

NEW YORK (AP) — Wall Street closed its latest winning month and quarter with more records on Monday. The drift higher for U.S. stocks followed a wild start to the week for financial markets in Asia, where Japanese stocks tumbled and Chinese indexes soared.

The S&P 500 climbed 0.4% to an all-time high and clinched its fifth straight winning month and fourth straight winning quarter. The Dow Jones Industrial Average added 17 points, or less than 0.1%, to its record set on Friday. The Nasdaq composite rose 0.4%.

Wall Street has catapulted to records on hopes the slowing U.S. economy can keep growing while the Federal Reserve cuts interest rates to offer it more juice. A big test will arrive Friday, when the U.S. government offers its latest monthly update on the job market.

An overriding worry on Wall Street is whether the economy may already be heading for a recession. Even though the Fed cut rates earlier this month and has indicated more relief is on the way, U.S. employers have already begun paring back on their hiring. Before this month, the Fed had kept interest rates at a two-decade high in hopes of slowing the economy enough to stamp out high inflation.

Stocks are holding close to records. More from AP’s Seth Sutel.

“Payrolls remain the biggest catalyst” for the U.S. stock market until the election, strategists and economists at Bank of America wrote in a BofA Global Research report.

At Goldman Sachs, economist David Mericle said he’s expecting Friday’s report to show hiring in September was stronger than the 146,000 growth in payrolls that economists across Wall Street were broadly forecasting.

In the past, a stronger-than-expected number could have hurt the stock market by fanning worries about upward pressure on inflation. Now, though, it would likely be welcomed as a signal that a recession shouldn’t be as big a worry.

Interest rates and the strength of the economy are usually the two main levers that set prices for stocks. In Asia, the levers were pulling in opposite directions.

Japan’s Nikkei 225 slumped 4.8% on worries the country’s incoming prime minister will support higher interest rates and other policies that investors see as less market-friendly. Shigeru Ishiba is set to take over on Tuesday.

Ishiba has expressed support for the Bank of Japan’s move to pull interest rates away from their near-zero level, which puts upward pressure on the value of the Japanese yen. A stronger yen can hurt profits for Japanese exporters, which make sales in other currencies and then convert them back into yen.

Toyota Motor’s stock fell 7.6% in Tokyo, while Honda Motor’s dropped 7%. Monday.

Stellantis, the company that owns the Jeep brand and others, tumbled 14.7% in Milan after cutting its forecast for upcoming profit. It cited investments to turn around its U.S. operations and increased Chinese competition.

That in turn helped drag down automakers Ford Motor and General Motors on Wall Street. Ford fell 2%, and GM dropped 3.5%.

A 2.3% rise for Apple helped offset such losses and was the strongest force lifting the S&P 500 to its latest record. After weakening in late July with other Big Tech stocks amid worries their prices had shot too high, Apple’s stock has been climbing back toward its all-time closing high of $234.82. It finished Monday at $233.00.

All told, the S&P 500 rose 24.31 points to 5,762.48. The Dow added 17.15 to 42,330.15, and the Nasdaq gained 69.58 to 18,189.17.

In China, meanwhile, indexes soared 8.1% in Shanghai and 2.4% in Hong Kong following the latest announcements of stimulus for the world’s second-largest economy. It was the best day for Shanghai stocks in nearly 16 years.

China’s central bank announced moves on Sunday to ease mortgage rates for existing home loans by Oct. 31. That followed a flurry of announcements last week from China’s central bank and government intended to prop up the Chinese economy, whose growth has been flagging in part because of the weight of a struggling real-estate sector.

Markets in mainland China will be closed Tuesday through Oct. 7 for a holiday marking 75 years of communist rule.

In the bond market, U.S. Treasury yields rose after investors took comments from Fed Chair Jerome Powell as a hint that coming cuts to interest rates may be more traditional sized.

The Fed began its rate-cutting campaign with a larger-than-usual reduction of half a percentage point, and many traders had built expectations that the next meeting in November could yield a similar sized reduction. That was even though Fed policy makers had already indicated they were planning two more cuts this year of the traditional size of a quarter of a percentage point.

But Powell said again on Monday that rate cuts are not something the Fed needs to work quickly on. After his comments, traders were betting on just a 35% probability the Fed will cut rates by another half a percentage point in November. That’s down from a 53% chance seen the day before, according to data from CME Group.

The yield on the 10-year Treasury rose to 3.78% from 3.75% late Friday. The two-year yield, which more closely tracks expectations for what the Fed will do with short-term rates, climbed to 3.63% from 3.56%.

ASX 200 expected to fall​

The Australian share market is expected to fall on Tuesday despite a positive start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 32 points or 0.3% lower.

Wall Street closed its latest winning month and quarter with more records on Monday. The drift higher for U.S. stocks followed a wild start to the week for financial markets in Asia, where Japanese stocks tumbled and Chinese indexes soared.

The S&P 500 climbed 0.4% to an all-time high and clinched its fifth straight winning month and fourth straight winning quarter. The Dow Jones Industrial Average added 17 points, or less than 0.1%, to its record set on Friday. The Nasdaq composite rose 0.4%.

All told, the S&P 500 rose 24.31 points to 5,762.48. The Dow added 17.15 to 42,330.15, and the Nasdaq gained 69.58 to 18,189.17.

 

[bigdog]

Wall Street retreats from records and oil prices jump after Iran's missile attack on Israel

U.S. stocks pulled back from their records after a sharp escalation of tensions in the Middle East raised worries about potential disruptions to the flow of oil.

apnews.com

Wall Street retreats from records and oil prices jump after Iran’s missile attack on Israel​

By STAN CHOE
Updated 7:27 AM GMT+10, October 2, 2024

NEW YORK (AP) — U.S. stocks retreated from their records Tuesday after Iran fired missiles into Israel, a sharp escalation of tensions in the Middle East that investors fear could lead to disruptions in the flow of oil.

The S&P 500 pulled 0.9% lower, and the Dow Jones Industrial Average lost 173 points, or 0.4%, after both had set all-time highs the day before. The Nasdaq composite dropped 1.5% after paring a bigger loss from earlier in the day, like other indexes.

Oil prices jumped amid speculation about how Israel and the United States may respond to Iran’s move. White House National Security Adviser Jake Sullivan called Iran’s missile attack a “significant escalation,” although he said it was ultimately “defeated and ineffective.”

While Israel is not a major producer of oil, Iran is, and the potential for a wider conflict could affect other, neighboring producers of crude. The price for a barrel of benchmark U.S. crude rose 2.4% to settle at $69.83. Brent crude, the international standard, rallied 2.6% to $73.56 per barrel.

That in turn sent shares of oil-and-gas producers to some of the stock market’s biggest gains. ConocoPhillips rose 3.9%, and Exxon Mobil climbed 2.3%.

Shares of defense contractors also rallied. Northrop Grumman rose 3%, and RTX added 2.7%. RTX partners with Israeli company Rafael Advanced Defense Systems to make the “Iron Dome” air defense system that Israel’s government uses.

Fighting in the Middle East has the attention of investors. The AP’s Seth Sutel reports.

The majority of U.S. stocks, though, sank. The two biggest stocks in the market, Apple and Microsoft, both fell at least 2.2%, while the smallest U.S. stocks that make up the Russell 2000 index dropped 1.5%.

“Stocks are vulnerable as we are at all-time highs, and valuations are stretched prior to the election,” according to Jay Hatfield, CEO at Infrastructure Capital Advisors.

All told, the S&P 500 fell 53.73 points to 5,708.75. The Dow dropped 173.18 to 42,156.97, and the Nasdaq composite lost 278.81 to 17,910.36.

The all-time high that the S&P 500 set on Monday was its 43rd of the year so far. Stocks had been jumping on hopes the U.S. economy can continue to grow despite a slowdown in the job market, as the Federal Reserve cuts interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years, and it’s indicated it will deliver more cuts through next year.

The dominant question hanging over Wall Street is whether the cuts will ultimately prove to be too little, too late after the Fed earlier kept rates at a two-decade high in hopes of braking on the economy enough to stamp out high inflation.

A discouraging report arrived Tuesday, showing U.S. manufacturing weakened by more in September than economists expected. Manufacturing has been one of the areas of the economy hurt most by high interest rates, and the report from the Institute for Supply Management said demand continues to slow.

A separate report was potentially more encouraging. It showed U.S. employers were advertising more than 8 million job openings at the end of August. That was slightly more than July’s number and better than what economists were expecting. A more comprehensive report on hiring will arrive on Friday, when the U.S. government details how many jobs U.S. employers created in September.

Besides the job market, another threat to the economy could lie in the strike by dockworkers at 36 ports across the eastern United States. It could snarl supply chains and drive up inflation if it lasts a while.

The workers are asking for a labor contract that doesn’t allow automation to take their jobs, among other things. So far, financial markets have taken the strike in stride. Supply chain experts say consumers won’t see an immediate impact from the strike because most retailers stocked up on goods, moving ahead shipments of holiday gift items.

In the bond market, the yield on the 10-year Treasury fell to 3.73% from 3.79% late Monday. Yields fell after worries about the Middle East drove investors into Treasurys, gold and other investments seen as safer.

Yields had already been easing worldwide beforehand, following an encouraging update on inflation from Europe. Inflation among the 20 countries that use the euro currency came in below 2% in September, the first time that’s happened in more than three years. The slowdown could give the European Central Bank leeway to cut interest rates more quickly.

European stocks indexes initially swung higher following the inflation update, only to fall to losses. Indexes dropped 0.8% in France and 0.6% in Germany.

Farther east, a quarterly “tankan” survey by the Bank of Japan showed more large manufacturers are still feeling optimistic about business conditions than pessimistic. Japan also reported that its unemployment rate for August fell to 2.5% from 2.7% in July, in line with market expectations.

Japan’s benchmark Nikkei 225 rallied 1.9% to claw back some of its steep 4.8% loss from the day before.

Markets in China and South Korea were shut for holidays. Mainland Chinese markets, which had their best day since 2008 on Monday, will remain closed until Oct. 7 for the National Day break.

ASX 200 expected to modestly rise​

The Australian share market looks set to edge higher on Wednesday despite a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher.

U.S. stocks retreated from their records Tuesday after Iran fired missiles into Israel, a sharp escalation of tensions in the Middle East that investors fear could lead to disruptions in the flow of oil.

The S&P 500 pulled 0.9% lower, and the Dow Jones Industrial Average lost 173 points, or 0.4%, after both had set all-time highs the day before. The Nasdaq composite dropped 1.5% after paring a bigger loss from earlier in the day, like other indexes.

All told, the S&P 500 fell 53.73 points to 5,708.75. The Dow dropped 173.18 to 42,156.97, and the Nasdaq composite lost 278.81 to 17,910.36.

 

[bigdog]

Stock market today: Wall Street edges higher as financial markets steady themselves

U.S. stocks edged higher and remain near their record levels. The S&P 500 ended little changed Wednesday, a day after sliding from its all-time high on worries about a possible widening of the fighting in the Middle East.

apnews.com

Wall Street edges higher as financial markets steady themselves​

By STAN CHOE
Updated 7:19 AM GMT+10, October 3, 2024

NEW YORK (AP) — U.S. stocks edged higher in a quiet Wednesday, and Treasury yields rose following an encouraging update on the job market’s strength.

The S&P 500 finished virtually unchanged, a day after sliding from its record on worries about a possible widening of the fighting in the Middle East. The Dow Jones Industrial Average edged up by 39 points, or 0.1%, and the Nasdaq composite added 0.1%.

Oil prices rose again as the world waits to see how Israel will respond to Tuesday’s missile attack from Iran, but they pared their gains as the day progressed. After briefly topping $76 earlier, the price for a barrel of Brent crude settled at $73.90, up 0.5%.

While Israel is not a major producer of oil, Iran is, and a worry is that a broadening war could affect neighboring countries that are also integral to the flow of crude. Helping to keep oil prices in check, meanwhile, are signals that supplies remain ample at the moment. The amount of crude in U.S. inventories increased last week, according to a U.S. government report.

In the bond market, Treasury yields rose after a report indicated hiring by U.S. employers outside the government may have been stronger last month than expected.

The report from ADP Research said private-sector employers accelerated their hiring in September. That could be an encouraging signal for the more comprehensive report on the U.S. job market due to arrive Friday from the U.S. government.

AP business correspondent Seth Sutel reports uncertainty in the Middle East is having an impact on Wall Street.

The dominant question hanging over Wall Street has been whether the job market can keep holding up after the Federal Reserve earlier kept interest rates at a two-decade high. The Fed was trying to press the brakes hard enough on the economy to stamp out high inflation.

Stocks are near records in large part on the belief that the U.S. economy will indeed continue to grow, now that the Federal Reserve has shifted to cutting interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

The yield on the 10-year Treasury rose to 3.78% from 3.73% late Tuesday. The two-year yield, which more closely follows expectations for what the Fed will do with overnight interest rates, rose to 3.63% from 3.61%.

Traders are ratcheting back their expectations for how much the Fed will cut rates by at its next meeting in November. They’re now mostly betting on a traditional-sized cut of a quarter of a percentage point, according to data from CME Group.

On Wall Street, Caesars Entertainment jumped 5.3% for the biggest gain in the S&P 500. The casino owner said it approved a new program to deliver up to $500 million to shareholders by buying back more of its stock.

Ciena climbed 7.4% after the networking company announced its own program to buy back up to $1 billion of its stock.

They helped offset an 11.8% tumble for Humana after the insurer warned a drop in its quality ratings for Medicare Advantage could mean a hit to its revenue in 2026. Humana said it believes there may be errors in the Centers for Medicare and Medicaid Services’ calculations, and it is trying to challenge the ratings.

Nike sank 6.8% even though the athletic giant reported stronger profit for the latest quarter than analysts expected. Its revenue fell short of forecasts, and the slump shows how much work incoming CEO Elliott Hill has in making the brand cool among customers. Nike also pulled its forecast for full-year financial results and postponed its investors day conference.

Conagra Brands fell 8.1% after the company behind Duncan Hines and Reddi-wip reported weaker profit than analysts expected. It said temporary manufacturing disruptions at its Hebrew National business during prime grilling season hurt its results.

Tesla sank 3.5% despite reporting an increase in its deliveries of electric vehicles during the latest quarter, the first time that’s happened this year. The number topped analysts’ forecasts, but investors may have been expecting an even bigger increase.

All told, the S&P 500 rose 0.79 to 5,709.54. The Dow gained 39.55 to 42,196.52, and the Nasdaq added 14.76 to 17,925.12.

In stock markets abroad, Hong Kong’s Hang Seng roared 6.2% higher, riding a wave of investor enthusiasm over recent announcements from Beijing to rev up the Chinese economy. With Shanghai and other markets in China closed for a holiday, trading crowded into Hong Kong.

Japan’s Nikkei 225 lost 2.2% to continue its sharp swings, while indexes in Europe were mixed.

ASX 200 expected to edge higher​

The local market looks set to edge higher on Thursday following a relatively positive night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning.

U.S. stocks edged higher in a quiet Wednesday, and Treasury yields rose following an encouraging update on the job market’s strength.

The S&P 500 finished virtually unchanged, a day after sliding from its record on worries about a possible widening of the fighting in the Middle East. The Dow Jones Industrial Average edged up by 39 points, or 0.1%, and the Nasdaq composite added 0.1%.

All told, the S&P 500 rose 0.79 to 5,709.54. The Dow gained 39.55 to 42,196.52, and the Nasdaq added 14.76 to 17,925.12.

 

[bigdog]

Stock market today: Oil prices jump again on worries about the Middle East as Wall Street fades

Crude prices jumped on worries about worsening tensions in the Middle East, while U.S. stocks pulled back further from their records.

apnews.com

Oil prices jump again on worries about the Middle East as Wall Street fades​

By STAN CHOE
Updated 6:20 AM GMT+10, October 4, 2024

NEW YORK (AP) — Crude prices jumped Thursday on worries that worsening tensions in the Middle East could disrupt the global flow of oil, while U.S. stocks pulled back further from their records.

The S&P 500 fell 0.2% amid a shaky week that’s knocked the index off its all-time high set on Monday. The Dow Jones Industrial Average fell 184 points, or 0.4%, and the Nasdaq composite edged down by less than 0.1%.

Stocks sank as oil prices kept rising amid the world’s wait to see how Israel will respond to Iran’s missile attack from Tuesday. A barrel of Brent crude, the international standard, leaped 5% to settle at $77.62 after starting the week below $72. It’s potentially on track for its biggest weekly percentage gain in nearly two years.

Oil prices rose after President Joe Biden suggested on Thursday that U.S. and Israeli officials were discussing a possible strike by Israel against Iranian oil facilities.

AP correspondent Seth Sutel has the Markets in a Minute report, with stocks getting off to a sluggish start.

“We’re in discussion of that,” Biden said to reporters. He added, “I think that would be a little – anyway,” without finishing the thought. Biden also said he doesn’t expect Israel to retaliate immediately against Iran.

Iran is a major producer of oil, and a worry is that a broadening of the fighting could not only choke off Iran’s flows to China but also affect neighboring countries that are integral to the flow of crude. Helping to keep prices in check, though, are signals that supplies of oil remain ample at the moment. Brent crude fell to its lowest price in nearly three years last month.

In the bond market, Treasury yields rose after reports suggested the U.S. economy remains solid. One showed growth for real estate, health care and other U.S. services businesses accelerated to its strongest pace since February 2023 and topped economists’ expectations, though employment trends may be slowing.

A separate report suggested the number of layoffs across the United States remains relatively low. Slightly more workers filed for unemployment benefits last week, but the number remains low compared with history.

Outside of this week’s worries about the Middle East, the dominant question hanging over Wall Street has been whether the job market will continue to hold up after the Federal Reserve earlier kept interest rates at a two-decade high. The Fed wanted to press the brake hard enough on the economy to stamp out high inflation.

Stocks are near their records because of hopes the U.S. economy will indeed continue to grow, now that the Federal Reserve is cutting interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

China is also talking about more aid for its economy, and “when the top policymakers in the world’s two largest economies are determined to support economic growth, it pays to listen,” according to Evan Brown, head of multi-asset strategy at UBS Asset Management. He suggests not underestimating policy makers’ resolve to cut off the risk of a recession.

The job market could use help, as U.S. hiring has been slowing. The U.S. government will release the latest monthly update on the jobs market on Friday, and economists expect it to show hiring slowed slightly from August’s pace.

On Wall Street, Levi Strauss dropped 7.7% despite reporting better profit for the latest quarter than analysts expected. The denim company’s revenue fell short of forecasts, and it said it’s considering what to do with its Dockers brand, whose revenue fell 7% last quarter.

Nvidia helped cushion the losses, and the 3.3% gain for the chip company was the strongest force pushing up on the S&P 500. After stumbling during the summer on worries that its price shot too high in Wall Street’s frenzy around artificial-intelligence technology, Nvidia has been climbing back toward its record.

All told, the S&P 500 slipped 9.60 points to 5,699.94. The Dow dropped 184.93 to 42,011.59, and the Nasdaq composite slipped 6.65 to 17,918.48.

The yield on the 10-year Treasury rose to 3.85% from 3.78% late Wednesday. The two-year yield, which moves more closely with expectations for what the Fed will do with overnight rates, rose to 3.70% from 3.64%.

Yields have been rising as traders pare their bets for how much the Federal Reserve will cut interest rates by at its next meeting in November. After many were earlier forecasting another deeper-than-usual cut of half a percentage point, traders are now betting on a 65% chance the Fed will cut by just a quarter of a percentage point, according to data from CME Group.

In stock markets abroad, Japan’s Nikkei 225 jumped 2% as its sharp swings continue amid speculation about when the country’s central bank may hike interest rates next.

Hong Kong’s Hang Seng has also been swerving, and it gave back 1.5%. Stocks in China have largely been surging on hopes for a flurry of recent announcements from Beijing to prop up the world’s second-largest economy. With Shanghai and other markets in China closed for a weeklong holiday, trading has crowded into Hong Kong.

ASX 200 expected to fall​

The Australian share market looks set to fall on Friday following a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 27 points or 0.3% lower this morning.

Crude prices jumped Thursday on worries that worsening tensions in the Middle East could disrupt the global flow of oil, while U.S. stocks pulled back further from their records.

The S&P 500 fell 0.2% amid a shaky week that’s knocked the index off its all-time high set on Monday. The Dow Jones Industrial Average fell 184 points, or 0.4%, and the Nasdaq composite edged down by less than 0.1%.

All told, the S&P 500 slipped 9.60 points to 5,699.94. The Dow dropped 184.93 to 42,011.59, and the Nasdaq composite slipped 6.65 to 17,918.48.

 

[bigdog]

Stock market today: Dow rallies to a record after a blockbuster jobs report

U.S. stocks rallied after a surprisingly strong U.S. jobs report raised optimism about the economy. The S&P 500 climbed 0.9% Friday to near its all-time high set on Monday.

apnews.com

Dow rallies to a record after a blockbuster jobs report​

By STAN CHOE
Updated 7:06 AM GMT+10, October 5, 2024

NEW YORK (AP) — U.S. stocks rallied Friday after a surprisingly strong report on the U.S. job market raised optimism about the economy.

The S&P 500 climbed 0.9% and got close to its all-time high set on Monday. The Dow Jones Industrial Average rose 341 points, or 0.8%, to set its own record, while the Nasdaq composite clambered 1.2% higher.

Leading the way were banks, airlines, cruise-ship operators and other companies whose profits can benefit the most from a stronger economy where people are working and better able to pay for things. Norwegian Cruise Line steamed 4.9% higher, JPMorgan Chase rose 3.5% and the small companies in the Russell 2000 index gained 1.5%.

They helped stock indexes claw back losses from earlier in the week, caused by worries that worsening tensions in the Middle East could lead to disruptions in the global flow of oil. Crude prices rose again Friday, but the moves were more modest than earlier in the week, as the world continued its wait to see how Israel will respond to Iran’s missile attack.

In the meantime, the strength of the U.S. economy reclaimed its spot as the top mover of markets.

Treasury yields soared in the bond market after the U.S. government said employers added 254,000 more jobs to their payrolls last month than they cut. That was an acceleration from August’s hiring pace of 159,000 and blew past economists’ forecasts.

It was a “grand slam” of a report, according to Lindsay Rosner, head of multi-sector investing within Goldman Sachs Asset Management. She said policy makers at the Federal Reserve, who have been trying to pull off the difficult feat of keeping the economy humming while getting inflation under control, “must be smiling.”

Friday’s report capped a week of mostly encouraging data on the economy, helping to allay one of Wall Street’s top questions: Can the job market continue to hold up after the Fed earlier kept interest rates at a two-decade high?

Before Friday’s jobs report, the general trend had been a slowdown in hiring by U.S. employers. That’s not surprising given how hard the Fed pressed the brakes on the economy through higher rates in order to stamp out high inflation.

But Friday’s blowout numbers bolstered hope that the U.S. economy will keep growing, particularly now that the Fed has begun cutting interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

Friday’s jobs report was so strong that it pushed traders to abandon bets that the Fed will deliver another larger-than-usual cut to interest rates at its next meeting. They’re now forecasting zero chance for a cut of half a percentage point, according to data from CME Group. Just a week ago, they were saying it was better than a coin flip’s chance.

“This report tells the Fed that they still need to be careful as a strong labor market along with sticky housing/shelter data shows that it won’t be easy to engineer meaningfully lower inflation from here in the nearer term,” according to Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

At Bank of America, economist Aditya Bhave expects the Fed to stop cutting its target for the federal funds rate when it hits a range of 3% to 3.25%. That’s a quarter of a percentage point higher than the bottom that he was earlier forecasting. The federal funds rate is currently sitting in a range of 4.75% to 5%.

Such diminished expectations for future cuts sent the yield on the two-year Treasury shooting up to 3.93% from 3.71% late Thursday. The 10-year yield jumped to 3.97% from 3.85%.

The forced rethink about how low rates will ultimately go hurt stocks of home builders, real-estate owners and other companies that benefit from easier mortgage rates.

D.R. Horton, PulteGroup and Lennar all sank at least 2.5% for three of the biggest losses in the S&P 500. Home Depot slipped 0.8% and was the biggest single reason the Dow Jones Industrial Average lagged other indexes. During the day, the Dow went from an early gain of 300 points to a modest loss and back to a big gain.

All told, the S&P 500 rose 51.13 points to 5,751.07. The Dow gained 341.16 to 42,352.75, and the Nasdaq climbed 219.37 to 18,137.85.

Also Friday, some 45,000 dockworkers at East and Gulf coast ports returned to work after their union reached a deal to suspend its three-day strike until Jan. 15 to provide time to negotiate a new contract. That helped calm worries that a lengthy strike could have pushed up on inflation and dragged on the economy.

In the oil market, the price for a barrel of Brent crude, the international standard, rose 0.6% to $78.05 per barrel to bring its gain for the week to 9.1%. A barrel of benchmark U.S. crude rose 0.9% to $74.38, up from roughly $68 at the start of the week.

In stock markets abroad, indexes rose across much of Europe following the strong jobs report from the world’s largest economy.

In Asia, Hong Kong’s Hang Seng jumped 2.8% in its latest sharp swerve. It soared a bit more than 10% over the week on excitement about a flurry of recent announcements from Beijing to prop up the world’s second-largest economy.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to rebound on Monday following a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% higher.

U.S. stocks rallied Friday after a surprisingly strong report on the U.S. job market raised optimism about the economy.

The S&P 500 climbed 0.9% and got close to its all-time high set on Monday. The Dow Jones Industrial Average rose 341 points, or 0.8%, to set its own record, while the Nasdaq composite clambered 1.2% higher.

All told, the S&P 500 rose 51.13 points to 5,751.07. The Dow gained 341.16 to 42,352.75, and the Nasdaq climbed 219.37 to 18,137.85.

 

[bigdog]

Stock market today: Wall Street slides after Treasury yields climb back above 4% and oil rises

U.S. stocks slid after Treasury yields hit their highest levels since the summer and oil prices continued to climb.

apnews.com

Wall Street slides after Treasury yields climb back above 4% and oil rises​

By STAN CHOE
Updated 8:04 AM GMT+11, October 8, 2024

NEW YORK (AP) — U.S. stocks slid Monday after Treasury yields hit their highest levels since the summer and oil prices continued to climb.

The S&P 500 dropped 1%, though it’s still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 398 points, or 0.9%, coming off its own record, while the Nasdaq composite sank 1.2%.

It’s a stall for U.S. stocks after they rallied to records on relief that interest rates are finally heading back down, now that the Federal Reserve has widened its focus to include keeping the economy humming instead of just fighting high inflation. Friday’s blowout report on U.S. jobs growth raised optimism about the economy and hopes that the Fed can pull off a perfect landing for it.

The stronger-than-expected hiring pushed Goldman Sachs economist David Mericle to say he now sees just a 15% chance of a recession, down from 20%.

But Friday’s jobs report was so strong that it also forced traders to ratchet back forecasts for how much the Fed will ultimately cut interest rates by. That in turn has sent Treasury yields higher, and the 10-year yield is back above 4% for the first time since August.

The two-year Treasury yield also briefly climbed back above 4% Monday, up from 3.50% a couple weeks ago. That’s a sizeable move for the bond market, and it can drag on prices for stocks and all kinds of other investments.

When Treasury bonds, which are seen as the safest possible investments, are paying more in interest, investors become less inclined to pay very high prices for stocks and other things that carry bigger risk of losing money.

Monday’s sharpest losses hit stocks of utility companies. These kinds of stocks tend to pay big dividends, which means they can see potential buyers leave when bonds are paying more in interest.

Utilities fell 2.3% for the sharpest loss among the 11 sectors that make up the S&P 500 index, including a 5.2% drop for Vistra and a 3.3% slide for Duke Energy.

It’s more difficult to look attractive to investors seeking income when a 10-year Treasury is paying a 4.02% yield, up from 3.97% late Friday and from 3.62% three weeks ago.

The yield on the two-year Treasury, which more closely tracks expectations for the Fed, jumped more on Monday. It rose to 3.99% from 3.92% late Friday.

Treasury yields may also be feeling upward push from the recent jump in oil prices. Crude prices have been spurting higher on worries that worsening tensions in the Middle East could ultimately lead to disruptions in the flow of oil.

Brent crude, the international standard, rose another 3.7% Monday to settle at $80.93 per barrel. Benchmark U.S. crude, meanwhile, also gained 3.7%, to $77.14 per barrel.

Stocks that are seen as the most expensive can feel the most downward pressure from higher Treasury yields, and the spotlight has been on Big Tech stocks. They drove the majority of the S&P 500’s returns in recent years and soared to heights that critics called overdone.

Apple fell 2.3%, Amazon dropped 3% and Alphabet sank 2.4% to act as some of Monday’s heaviest weights on the S&P 500.

An exception was Nvidia, which rose another 2.3%. It rode another upswell in excitement about artificial-intelligence technology after Super Micro Computer soared 15.8% after saying it recently shipped more than 100,000 graphics processing units with liquid cooling.

If Treasury yields keep rising, companies will likely need to deliver bigger profits to drive their stock prices much higher, and this week marks the start of the latest corporate earnings reporting season.

Analysts say earnings per share grew 4.2% during the summer for S&P 500 companies from a year earlier, led by technology and health care companies, according to FactSet. If those analysts are correct, it would be a fifth straight quarter of growth.

PepsiCo will report its latest quarterly results on Tuesday, but the momentum will really pick up Friday. That’s when JPMorgan Chase, Wells Fargo and Bank of New York Mellon will report, as banks dominate the early days of reporting season.

Bank stocks were mixed Monday, with a few adding to gains from Friday when the stronger-than-expected jobs report raised hopes that customers will borrow more money and make good on the loans.

Elsewhere on Wall Street, winemaker Duckhorn Portfolio more than doubled after a private-equity firm said it would buy the company for roughly $1.95 billion in cash.

All told, the S&P fell 55.13 points to 5,695.94. The Dow dropped 398.51 to 41,954.24, and the Nasdaq sank 213.95 to 17,923.90.

In stock markets abroad, European indexes were mixed following bigger gains in Asia.

Japan’s Nikkei 225 index rose 1.8% after the value of the yen sank against the U.S. dollar. A weaker yen can boost profits for Japanese exporters.

Stock markets in mainland China will reopen on Tuesday from a weeklong holiday, and the government said it plans to explain details of plans for economic stimulus at a morning news conference in Beijing.

ASX 200 expected to fall​

The Australian share market is expected to fall on Tuesday following a poor start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 4 points lower.

U.S. stocks slid Monday after Treasury yields hit their highest levels since the summer and oil prices continued to climb.

The S&P 500 dropped 1%, though it’s still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 398 points, or 0.9%, coming off its own record, while the Nasdaq composite sank 1.2%.

All told, the S&P fell 55.13 points to 5,695.94. The Dow dropped 398.51 to 41,954.24, and the Nasdaq sank 213.95 to 17,923.90.

 

[bigdog]

Stock market today: Wall Street rebounds after Hong Kong stocks fall to worst day since 2008

U.S. stocks rebounded after falling oil prices released some of the pressure that built up on the market.

apnews.com

​

Wall Street rebounds after Hong Kong stocks fall to worst day since 2008​

By STAN CHOE
Updated 8:22 AM GMT+11, October 9, 2024

NEW YORK (AP) — U.S. stocks rebounded Tuesday after falling oil prices released some of the pressure that built up on the market.

The S&P 500 rallied 1% to claw back all of its loss from the day before. The Dow Jones Industrial Average rose 126 points, or 0.3%, and likewise neared its record set last week, while the Nasdaq composite led the way with a 1.4% rally.

Wall Street held firm even though stock markets around the world sank following scary swings in China, as euphoria about possible stimulus for the world’s second-largest economy gave way to disappointment. Stocks tumbled 9.4% in Hong Kong for their worst day since the 2008 global financial crisis.

Helping to support Wall Street was a sharp drawdown in oil prices. They gave back some of the big recent gains they made on worries that worsening tensions in the Middle East could ultimately lead to disruptions in the flow of oil.

Stocks are rebounding in early trading. More from AP’s Seth Sutel.

A barrel of Brent crude, the international standard, fell 4.6% to $77.18 for its first loss in a week and a half. A barrel of benchmark U.S. crude, meanwhile, eased 4.6% to $73.57.

That also helped level off the pressure on the stock market from the bond market. Treasury yields eased a bit, a day after they shot to their highest levels since the summer.

The 10-year Treasury yield edged down to 4.02 from 4.03% late Monday. The two-year yield, which more closely tracks expectations for what the Federal Reserve will do with overnight interest rates, slipped to 3.96% from 3.99%, late Monday, though it’s still near its highest level since August.

When Treasurys are paying higher yields, investors generally become less willing to pay very high prices for stocks and other investments. And Treasury yields had been storming higher over the last week following a suite of reports showing the U.S. economy remains healthier than expected.

Such reports, including one last week showing stronger hiring by U.S. employers than forecast, raise hopes that the economy will avoid a recession. But they also force traders to ratchet back expectations for how much the Federal Reserve will cut interest rates by, now that it has widened its focus to include keeping the economy humming instead of just fighting high inflation.

Traders have abandoned expectations for the Fed to cut its main interest rate by a larger-than-usual half of a percentage point at its next meeting, for example. Instead, they’re largely betting on a traditional-sized cut of a quarter of a percentage point, according to data from CME Group. Some are even calling for the possibility the Fed could keep its main rate steady in November.

High Treasury yields put the most pressure on stocks seen as the most expensive, and that puts the spotlight on the Big Tech stocks that have led the market for most of the last few years.

On Tuesday, all of the Big Tech stocks that have collectively come to be called the “Magnificent Seven” rose. Nvidia led the way with a gain of 4% and was the strongest single force pushing upward on the S&P 500.

PepsiCo climbed 1.9% after delivering stronger profit for the latest quarter than analysts expected, though its revenue fell short.

CEO Ramon Laguarta also said the company now expects a “low single-digit” increase in an important measure of revenue for the year after it had earlier forecast growth of about 4%. U.S. consumers continue to pull back on buying snacks and drinks after years of price increases.

On the losing end of Wall Street were oil-and-gas companies, which gave back some of their big recent gains driven by the last week’s jump in crude prices. Chevron fell 1.6% and was one of the main reasons the Dow lagged other indexes.

All told, the S&P 500 rose 55.19 points to 5,751.13. The Dow added 126.13 to 42,080.37, and the Nasdaq gained 259.01 to 18,182.92.

In stock markets abroad, trading in mainland China reopened following a national holiday. Before, indexes in Shanghai and Shenzhen had surged on hopes for stimulus from the government and the central bank meant to prop up the economy’s flagging growth.

On Tuesday, China’s economic planning agency outlined details of measures aimed at boosting the economy, but it refrained from major spending initiatives. That helped lead to the 9.4% drop for the Hang Seng index in Hong Kong.

In Shanghai, where the market had been closed as Hong Kong ran higher over the last week, stocks rose 4.6% following their reopening.

The disappointment in China had worldwide effects, knocking down stocks of companies in Europe, the United States and elsewhere that do lots of business in and around China. Estee Lauder fell 2.2%, for example, while Wynn Resorts lost 3.3%.

ASX 200 expected to rebound​

The Australian share market looks set to edge higher on Wednesday.

According to the latest SPI futures, the ASX 200 is expected to open the day 15 points higher.

U.S. stocks rebounded Tuesday after falling oil prices released some of the pressure that built up on the market.

The S&P 500 rallied 1% to claw back all of its loss from the day before. The Dow Jones Industrial Average rose 126 points, or 0.3%, and likewise neared its record set last week, while the Nasdaq composite led the way with a 1.4% rally.

All told, the S&P 500 rose 55.19 points to 5,751.13. The Dow added 126.13 to 42,080.37, and the Nasdaq gained 259.01 to 18,182.92.

 

[bigdog]

Stock market today: Wall Street sets more records after Shanghai's worst drop since early COVID

U.S. stocks rose to records after the latest wild swerves for Chinese stocks left few ripples in markets worldwide.

apnews.com

Wall Street sets more records after Shanghai’s worst drop since early COVID​

By STAN CHOE
Updated 8:26 AM GMT+11, October 10, 2024

NEW YORK (AP) — U.S. stocks set records Wednesday after the latest wild swerves for Chinese stocks left few ripples in markets worldwide.

The S&P 500 rose 0.7% to top the all-time high it had set last week. The Dow Jones Industrial Average climbed 431 points, or 1%, to hit its own record, while the Nasdaq composite gained 0.6%.

Leading the way were cruise-ship companies, whose customers stand to benefit from the surprisingly strong U.S. job market. Norwegian Cruise Line steamed 10.9% higher after analysts at Citi upgraded its stock and said data suggests growth for the cruise industry “has real legs” into 2025 and beyond. Carnival rose 7%, and Royal Caribbean Group gained 5.3%.

Helen of Troy, the company behind Hydro Flask water bottles and OXO kitchen tools, jumped 17.9% after reporting profit and revenue for the latest quarter that were better than analysts expected. That was even though the company said it’s still seeing customers feeling increasingly stretched amid lingering inflation.

AP business correspondent Seth Sutel reports markets are trying to hold off losses overseas.

KinderCare Learning rose 8.9% in its debut on the New York Stock Exchange. It has over 2,400 early childhood education centers and before- and after-school sites across the country for kids aged between six weeks and 12 years.

They helped offset a 3.4% slump for Boeing. The aerospace giant withdrew a contract offer that would have given striking workers 30% raises over four years following a break down in labor talks.

Alphabet also kept the market’s gains in check after the heavyweight stock sank 1.5%. The U.S. Department of Justice is considering asking a federal judge to break up its Google business after its search engine was declared an illegal monopoly. A breakup is one of many possible remedies under review.

If a breakup were to happen, the question would become what happens with other Big Tech stocks like Amazon, Meta Platforms or Apple, and whether any would try to spin off business units before possibly being forcibly broken apart, according to JJ Kinahan, CEO of IG North America.

All told, the S&P 500 rose 40.91 points to 5,792.04. The Dow jumped 431.63 to 42,512.00, and the Nasdaq composite gained 108.70 to 18,291.62.

The relative calm on Wall Street followed another manic day in China. After earlier surging on hopes for stimulus to prop up the world’s second-largest economy, Chinese stocks have since slumped on disappointment that more isn’t on the way.

Stocks in Shanghai tumbled 6.6% for their worst loss since February 2020, when fears were rising about a virus seen in Wuhan and other cities in China. In Hong Kong, the Hang Seng index fell 1.4% after dropping more than 9% the day before, which was its worst loss since the global financial crisis of 2008.

Moves announced by China in late September fueled a rally that has since fizzled. But analysts have pointed out that a news conference on Tuesday by China’s main planning agency, the National Development and Reform Commission, was unlikely to convey much information about government spending, which is the purview of the Finance Ministry.

That ministry is due to hold a briefing on Saturday that could provide further details on planned government outlays that so far have fallen short of what investors have been hoping for.

The Shanghai Composite is still up 9.5% for the year so far, while Hong Kong’s index is up 21.1%.

Indexes were more stable elsewhere around the world on Wednesday and rose 0.9% in Japan and 1% in Germany.

In the oil market, prices eased further. A barrel of Brent crude, the international standard, fell 0.4% to settle at $73.24 after briefly topping $81 early this week. Benchmark U.S. crude fell 0.8% to $76.58 per barrel.

Earlier leaps for oil driven by worries about worsening tensions in the Middle East had helped drag the S&P 500 on Monday to its worst loss in a month.

In the bond market, the yield on the 10-year Treasury rose to 4.07% from 4.01% late Tuesday.

Treasury yields have swung recently, first sharply downward through the spring and summer and then turning upward in the last week or so.

They’ve followed traders’ expectations for what the Federal Reserve is likely to do with overnight interest rates. The central bank has just begun cutting interest rates from a two-decade high, as it widens its focus to include keeping the economy humming instead of just fighting high inflation.

That caused the sharp easing of rates through the summer, but recent reports have shown the U.S. economy remains stronger than expected. That in turn has forced traders to downshift forecasts for how much the Fed will ultimately cut rates by.

The Fed on Wednesday released the minutes from its last policy meeting, which included few surprises. It reiterated the Fed’s message from September, emphasizing that its larger-than-usual cut of half a percentage point was not necessarily a signal of big cuts in the future.

ASX 200 expected to rise again​

The local market looks set to push higher on Thursday following a positive night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.4% higher this morning

U.S. stocks set records Wednesday after the latest wild swerves for Chinese stocks left few ripples in markets worldwide.

The S&P 500 rose 0.7% to top the all-time high it had set last week. The Dow Jones Industrial Average climbed 431 points, or 1%, to hit its own record, while the Nasdaq composite gained 0.6%.

All told, the S&P 500 rose 40.91 points to 5,792.04. The Dow jumped 431.63 to 42,512.00, and the Nasdaq composite gained 108.70 to 18,291.62.

 

[bigdog]

Stock market today: Wall Street edges back from its records

U.S. stocks edged back from their record highs. The S&P 500 slipped 0.2% Thursday, and the Dow Jones Industrial Average fell 0.1% after likewise setting an all-time high the day before.

apnews.com

Wall Street edges back from its records​

By STAN CHOE
Updated 8:23 AM GMT+11, October 11, 2024

NEW YORK (AP) — U.S. stocks edged back from their records Thursday after reports showed inflation was a touch warmer last month than expected and more workers filed for unemployment benefits last week.

The S&P 500 slipped 0.2%, and the Dow Jones Industrial Average dipped 57 points, or 0.1%, after it likewise set an all-time high the day before. The Nasdaq composite edged down by 0.1%.

Stocks had stormed to records in large part on excitement about easing interest rates, now that the Federal Reserve is cutting them as it widens its focus to include keeping the economy humming instead of just fighting high inflation.

Lower rates ease the brakes off the economy and juice prices for investments, but the pace of further cuts will depend on if inflation continues to head down toward the Fed’s 2% target as it expects.

Thursday’s report showed inflation slowed to 2.4% in September from 2.5% in August, according to the consumer price index, but economists were expecting an even sharper slowdown to 2.3%. And after ignoring the swings for food, gasoline and other energy prices, underlying trends that economists say can be a better predictor for where inflation is heading were a touch hotter than expected.

At the same time, a separate report showed 258,000 U.S. workers filed for unemployment benefits last week. That number is relatively low compared with history, but it was a sharper acceleration than economists expected. Hurricane Helene and a strike by workers at Boeing may have helped make the number look worse.

In the bond market, Treasury yields rose immediately after the release of the economic data, only to then swing up and down as traders tried to handicap what it would all mean for the Fed.

The yield on the 10-year Treasury held at 4.07%, the level it was at late Wednesday. The two-year Treasury yield, which more closely tracks expectations for the Fed, fell to 3.96% from 4.02% late Wednesday.

Traders are still mostly convinced the Fed will cut its main interest rate by the traditional size of a quarter of a percentage point at its next meeting, according to data from CME Group. But some are holding onto bets that it could leave the federal funds rate alone in November. That’s after many traders earlier this month were calling for a larger-than-usual cut of half a percentage point, before a set of stronger-than-expected data on the economy wiped out such calls.

“Unless the jobs report that comes out on November 1st shows a dramatic drop in employment,” a traditional-sized cut of a quarter of a percentage point “might even come across as a little aggressive,” said Brian Jacobsen, chief economist at Annex Wealth Management.

On Wall Street, Toronto-Dominion fell 5.3% after it agreed to pay $3.09 billion as part of a resolution of U.S. investigations into its compliance programs related to money laundering. The company also agreed to a cap on how big two U.S. banking subsidiaries can grow.

Delta Air Lines lost 1.1% after reporting weaker results for the summer than analysts expected. The company said bookings for holiday travel are strong, but it’s anticipating a drop in flying around the election.

Oil prices, meanwhile, rose to claw back their sharp giveback from earlier in the week. A barrel of Brent crude added 3.7% to settle at $79.40. A barrel of benchmark U.S. crude gained 3.6% to $75.85.

That helped drive stocks in the energy industry higher, which kept the losses for U.S. stock indexes in check. Exxon Mobil added 0.9% and was one of the strongest forces pushing upward on the S&P 500, while Valero Energy climbed 2.4%.

All told, the S&P 500 slipped 11.99 points to 5,780.05. The Dow dipped 57.88 to 42,454.12, and the Nasdaq composite lost 9.57 to 18,282.05.

In stock markets abroad, Hong Kong’s Hang Seng jumped 3% for its latest sharp swing.

After rising on hopes for stimulus to prop up the world’s second-largest economy, Chinese stocks slumped earlier this week on disappointment that more isn’t on the way. But there’s still hope that more may come.

ASX 200 expected to fall​

The Australian share market looks set to fall on Friday following a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 3 points lower this morning.

U.S. stocks edged back from their records Thursday after reports showed inflation was a touch warmer last month than expected and more workers filed for unemployment benefits last week.

The S&P 500 slipped 0.2%, and the Dow Jones Industrial Average dipped 57 points, or 0.1%, after it likewise set an all-time high the day before. The Nasdaq composite edged down by 0.1%.

All told, the S&P 500 slipped 11.99 points to 5,780.05. The Dow dipped 57.88 to 42,454.12, and the Nasdaq composite lost 9.57 to 18,282.05.

 

[bigdog]

Stock market today: Wall Street rises to close its latest record-setting week as banks jump

U.S. stocks rose to records as JPMorgan Chase, Wells Fargo and other big financial companies rallied on better-than-expected profit reports.

apnews.com

Wall Street rises to close its latest record-setting week as banks jump​

By STAN CHOE
Updated 8:11 AM GMT+11, October 12, 2024

NEW YORK (AP) — U.S. stocks rose to records Friday as big banks rallied following a run of reassuring profit reports.

The S&P 500 climbed 0.6% to top its all-time high set earlier in the week and close out its fifth straight winning week, while the Dow Jones Industrial Average jumped 409 points, or 1%, to set its own record. The Nasdaq composite lagged the market with a gain of 0.3% after a slide for Tesla kept it in check.

Wells Fargo rose 5.6% after reporting stronger profit for the latest quarter than analysts expected. It benefited from better results from its venture-capital investments and higher fees for investment-banking services, among other things.

Banks and other financial giants traditionally kick off each earnings reporting season, and JPMorgan Chase climbed 4.4% after reporting a milder drop in profit than analysts feared. It was the strongest single force pushing upward on the S&P 500.

CEO Jamie Dimon said the nation’s largest bank is also still buying back shares of its stock to send cash to investors, but the pace is modest “given that market levels are at least slightly inflated.”

BlackRock, meanwhile, rose 3.6% after likewise delivering better profit for the latest quarter than analysts expected. The investment giant ended September managing a record $11.5 trillion in total assets for its customers.

The gains for banks helped make up for the drag of Tesla, which tumbled 8.8% and was the heaviest weight on the market. The electric-vehicle maker unveiled its long-awaited robotaxi on Thursday night, but critics highlighted a lack of details about its planned rollout.

Following the unveiling of the “Cybercab,” potential rival Uber Technologies jumped 10.8% and was one of the strongest forces lifting the S&P 500. Lyft rose 9.6%.

All told, the S&P 500 rose 34.98 points to 5,815.03. The Dow rallied 409.74 to 42,863.86, and the Nasdaq composite gained 60.89 to 18,342.94.

Another automaker, Stellantis, saw its European-traded shares sink 2.8% after it announced some significant leadership changes, including the timing of CEO Carlos Tavares’ retirement. Its chief financial officer is also departing as the company formed by the merger of PSA Peugeot and Fiat Chrysler struggles to revive sales in North America.

In the bond market, Treasury yields were mixed following the latest updates on inflation at the wholesale level and on sentiment among U.S. consumers.

Prices paid by producers were 1.8% higher in September than a year earlier. That was an improvement from August’s year-over-year inflation level, but not as much as economists expected. Analysts said it likely helped calm worries stirred a day earlier, when a report showed inflation at the consumer level wasn’t cooling as quickly as economists expected.

A separate report on Friday suggested sentiment among U.S. consumers is lower than economists expected. But the preliminary reading’s decline in sentiment was still within the margin of error, according to Joanne Hsu, director of the University of Michigan’s Surveys of Consumers.

After Friday’s reports, traders built their bets that the Federal Reserve would cut its main interest rate by a quarter of a percentage point at its next meeting, according to data from CME Group.

They’ve pared back their expectations from earlier this month, when some traders were betting on the possibility for another larger-than-usual cut of half a percentage point in November. A run of stronger-than-expected data on the economy recently has wiped out such calls.

Regardless of how much the Fed cuts rates by at its next meeting, the longer-term trend for interest rates remains downward, according to Solita Marcelli, chief investment officer Americas, at UBS Global Wealth Management. That should offer an upward push to stock prices generally.

The Fed last month cut its main interest rate from a two-decade high as it widens its focus to include keeping the economy humming instead of just fighting high inflation.

The yield on the 10-year Treasury rose to 4.09% from 4.07% late Thursday. The two-year yield, which more closely tracks expectations for the Fed’s upcoming moves, edged down to 3.95% from 3.96%.

In markets abroad, stocks fell 2.5% in Shanghai for their latest sharp swing ahead of a briefing scheduled for Saturday by China’s Finance Ministry. Investors hope it will unveil a big stimulus plan for the world’s second-largest economy.

South Korea’s Kospi slipped 0.1% after its central bank cut interest rates for the first time in more than four years in hopes of boosting its economy.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to rebound on Monday following a good finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.55% higher.

U.S. stocks rose to records Friday as big banks rallied following a run of reassuring profit reports.

The S&P 500 climbed 0.6% to top its all-time high set earlier in the week and close out its fifth straight winning week, while the Dow Jones Industrial Average jumped 409 points, or 1%, to set its own record. The Nasdaq composite lagged the market with a gain of 0.3% after a slide for Tesla kept it in check.

All told, the S&P 500 rose 34.98 points to 5,815.03. The Dow rallied 409.74 to 42,863.86, and the Nasdaq composite gained 60.89 to 18,342.94.

 

[bigdog]

Stock market today: Wall Street powers higher to more records

Wall Street rolled to more records as U.S. stocks added to their all-time highs. The S&P 500 climbed 0.8% to build on its record set on Friday.

apnews.com

Wall Street powers higher to more records​

By STAN CHOE
Updated 8:24 AM GMT+11, October 15, 2024

NEW YORK (AP) — Wall Street rolled to more records Monday as U.S. stocks added to their all-time highs.

The S&P 500 climbed 0.8% to build on its record set on Friday. It’s coming off its fifth straight winning week and is on track for its longest weekly winning streak of the year.

The Dow Jones Industrial Average rose 0.5% and added 201 points to its own record, while the Nasdaq composite gained 0.9%.

The gains followed relatively quiet trading in Europe, while the U.S. bond market remained closed for the day because of a holiday.

The strongest action in global markets came from China, where the finance minister gave a highly anticipated update on Saturday about plans for the world’s second-largest economy. Lan Fo’an said the government is looking at additional ways to boost the economy, but he stopped short of unveiling a major new stimulus plan that investors were hoping for.

Stocks are off to a slow start. The AP’s Seth Sutel reports.

The lack of detail sent markets spinning. Stocks in Shanghai jumped 2.1%, but the Hang Seng index in Hong Kong fell 0.7%. Crude oil prices, meanwhile, sank roughly 2% on worries about demand from China’s slowing economy.

Hopes for big stimulus in China have sent Chinese stocks sharply higher recently after they languished for years. But investors are skeptical about how much it can remake and restore the economy.

“While clearly welcome, the efforts may be insufficient to spur a new reflationary cycle,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

Besides oil, prices also fell for copper and other commodities that a healthy Chinese economy would devour. That helped drive down prices for miners, such as Freeport-McMoRan, which fell 2.3% for one of the larger losses in the S&P 500.

Boeing lost 1.3% in its first trading since the aerospace giant warned that it expects to report that it burned through $1.3 billion in cash during the latest quarter and lost $9.97 per share. Boeing also said it was laying off 10% of its workforce as it tries to deal with a labor strike that is crippling production of the company’s best-selling airline planes.

On the winning side of Wall Street was SoFi Technologies. It rose 11.4% after announcing a $2 billion loan platform agreement with investment firm Fortress Investment Group, where SoFi will refer pre-qualified borrowers.

Longboard Pharmaceuticals soared 51.6% after H. Lundbeck, a Danish company, said it would buy the biopharmaceutical company in an all-cash deal valuing it at $2.6 billion.

Trump Media & Technology Group jumped 18.5% and is near $30 again for the first time since July. The company behind former President Donald Trump’s Truth Social platform had briefly dropped below $12 last month. It continues to lose money, but its stock often moves more with Trump’s perceived re-election chances than anything else.

All told, the S&P 500 rose 44.82 points to 5,859.85. The Dow added 201.36 to 43,065.22, and the Nasdaq composite gained 159.75 to 18,502.69.

This upcoming week will have few top-tier economic reports outside of Thursday’s update on sales at U.S. retailers to help guide trading. That will likely leave the emphasis on corporate earnings reports, which will pick up the pace this week after big banks began the reporting season last week.

Bank of America, Johnson & Johnson and UnitedHealth Group will all report their latest results on Tuesday. Later in the week will come United Airlines, Netflix, American Express and Procter & Gamble.

Analysts are looking for S&P 500 companies to deliver overall growth of 4.1% in earnings per share for the latest quarter from a year earlier, according to FactSet. If they’re correct, it would be a fifth straight quarter of growth.

Solid, continued growth in profits for companies would help tamp down criticism that’s built up about how expensive the broad stock market looks, after share prices ran higher faster than earnings.

Stocks have broadly rallied to records on relief that interest rates are finally heading back down, now that the Federal Reserve has widened its focus to include keeping the economy humming instead of just fighting high inflation.

Recent reports showing the U.S. economy remains stronger than expected have also raised optimism that the Fed can pull off a perfect landing where it gets inflation down to 2% without causing a recession that many had thought would be necessary.

ASX 200 expected to rise again
The Australian share market is expected to rise again on Tuesday following a positive start to the week in the United States.

According to the latest SPI futures, the ASX 200 is poised to open the day 37 points or 0.4% higher.

Wall Street rolled to more records Monday as U.S. stocks added to their all-time highs.

The S&P 500 climbed 0.8% to build on its record set on Friday. It’s coming off its fifth straight winning week and is on track for its longest weekly winning streak of the year.

The Dow Jones Industrial Average rose 0.5% and added 201 points to its own record, while the Nasdaq composite gained 0.9%.

All told, the S&P 500 rose 44.82 points to 5,859.85. The Dow added 201.36 to 43,065.22, and the Nasdaq composite gained 159.75 to 18,502.69.

 

[bigdog]

Stock market today: Wall Street falls from its records as oil prices tumble and tech stocks drop

NEW YORK (AP) — Wall Street pulled back from its records on Tuesday after the price of crude oil tumbled and technology stocks faltered.

apnews.com

Wall Street falls from its records as oil prices tumble and tech stocks drop​

By STAN CHOE
Updated 8:34 AM GMT+11, October 16, 2024

NEW YORK (AP) — Wall Street pulled back from its records on Tuesday after the price of crude oil tumbled and technology stocks faltered.

The S&P 500 fell 0.8%, a day after setting an all-time high for the 46th time this year. The Dow Jones Industrial Average dropped 324 points, or 0.8%, and the Nasdaq composite sank 1%.

Exxon Mobil dropped 3%, and energy stocks fell to some of Wall Street’s sharpest losses after oil prices tumbled more than 4%. A barrel of Brent crude, the international standard, has fallen back below $75 from more than $80 last week.

Crude prices have been weakening as China’s flagging economic growth raises concerns about demand for oil. At the same time, worries have receded about Israel possibly attacking Iranian oil facilities as part of its retaliation against Iran’s missile attack early this month. Iran is a major producer of crude, and a strike could upend its exports to China and elsewhere.

Markets are off to a mixed start. More from AP’s Seth Sutel.

Nvidia was the heaviest weight on the S&P 500 and fell 4.5%. It’s a cooldown for the chip company, whose stock is still up 166.2% for the year so far on euphoria about the profits created by the boom around artificial-intelligence technology.

Stocks for companies across the chip industry fell after Dutch supplier ASML reported its latest quarterly results. CEO Christophe Fouquet said AI continues to offer strong upside potential, but “other market segments are taking longer to recover,” and ASML’s stock trading in the United States fell 16.3%.

Also dragging on the U.S. stock market was UnitedHealth Group. The insurer dropped 8.1% despite reporting better results for the latest quarter than analysts expected. It lowered the top end of its forecasted range for profit over the full year.

Helping to keep the S&P 500 and Dow close to their records set on Monday were gains for several financial companies following better-than-expected profit reports for the summer.

Charles Schwab jumped 6.1%. More customers opened brokerage accounts at the company, helping to bring its total client assets to a record $9.92 trillion. Bank of America added 0.5%, and CEO Brian Moynihan said his company benefited from higher average loans and fees for investment banking and asset management.

Walgreens Boots Alliance was another winner, up 15.8%, after topping analysts’ forecasts. The drugstore chain also said it will close about 1,200 locations over the next three years as it tries to turn around its struggling U.S. business.

Chipmaker Wolfspeed jumped 21.3% to trim its loss for the year to 68.3% after the Biden-Harris administration announced plans to provide up to $750 million in direct funding to the company. The money will support its new silicon carbide factory in North Carolina that makes the wafers used in advanced computer chips.

In the bond market, trading of Treasurys resumed after a holiday on Monday, and yields sank following a weaker-than-expected report on manufacturing in New York state.

The yield on the 10-year Treasury fell to 4.03% from 4.10% late Friday. Manufacturing has been one of the areas of the U.S. economy hurt most by high interest rates caused by the Federal Reserve in its efforts to slow the economy enough to stamp out high inflation.

Now, though, the Fed has begun cutting interest rates as it’s widened its focus to include keeping the economy humming instead of just fighting high inflation. It looks set to continue cutting rates through next year, which would ease the brakes further off the economy.

Recent reports showing the U.S. economy remains stronger than expected have raised optimism that the Fed can pull off a perfect landing where it gets inflation down to 2% without causing a recession that many had thought would be necessary.

Because of expectations for continued growth for the U.S. economy, as well as the boost that lower rates can give to corporate profits and prices for stocks, strategists at UBS raised their forecast for how high the S&P 500 could go this year and next.

Led by Jonathan Golub, they’re calling for the S&P 500 to rise to 5,850 by the end of the year, up from their prior forecast of 5,600.

The S&P 500 finished Tuesday at 5,815.26 after falling 44.59 points. The Dow dropped 324.80 to 42,740.42, and the Nasdaq composite sank 187.10 to 18,315.59.

In stock markets abroad, Chinese stocks fell sharply as doubts continue about whether the government will offer enough fiscal stimulus to prop up the world’s second-largest economy.

Stocks in Shanghai fell 2.5%, and Hong Kong’s Hang Seng index dropped 3.7%.

Indexes were mixed elsewhere in Asia and in Europe.

ASX 200 expected to fall​

The Australian share market looks set to tumble on Wednesday following a poor session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.4% lower.

Wall Street pulled back from its records on Tuesday after the price of crude oil tumbled and technology stocks faltered.

The S&P 500 fell 0.8%, a day after setting an all-time high for the 46th time this year. The Dow Jones Industrial Average dropped 324 points, or 0.8%, and the Nasdaq composite sank 1%.

The S&P 500 finished Tuesday at 5,815.26 after falling 44.59 points. The Dow dropped 324.80 to 42,740.42, and the Nasdaq composite sank 187.10 to 18,315.59.

 

[bigdog]

Stock market today: Wall Street rises as tech stocks and oil prices steady themselves

U.S. stocks rose following better-than-expected profit reports from Morgan Stanley, United Airlines and other big companies.

apnews.com

Wall Street rises as tech stocks and oil prices steady themselves​

By STAN CHOE
Updated 8:14 AM GMT+11, October 17, 2024

NEW YORK (AP) — U.S. stocks rose Wednesday following better-than-expected profit reports from Morgan Stanley, United Airlines and other big companies.

The S&P 500 gained 0.5% to recover much of the slide from its all-time high the day before because of tumbling energy and technology stocks. The Dow Jones Industrial Average rose 337 points, or 0.8%, to set its own record, and the Nasdaq composite added 0.3%.

Morgan Stanley rallied 6.4% after reporting stronger profit for the latest quarter than analysts expected. CEO Ted Pick said the investment bank enjoyed a “constructive environment” in its businesses around the world. And with stock prices near records, it’s managing even more money for clients.

United Airlines flew 12.4% higher after reporting a milder drop in summer profit than expected and announcing plans to send up to $1.5 billion to its shareholders by buying back its stock. J.B. Hunt Transport Services motored up by 3.1% after the freight company delivered better-than-expected results.

Stocks are wavering slightly. More from AP’s Seth Sutel.

They helped offset a 2.5% drop for Citizens Financial Group, which reported weaker results for the latest quarter than analysts expected.

Energy stocks were holding steadier, including a 0.3% tick higher for Exxon Mobil, a day after sliding to some of the market’s worst losses.

They’ve been generally following the price of oil, which has fallen back as worries recede that Israel will attack Iranian oil facilities as part of its retaliation for Iran’s missile attack early this month. Iran is a major producer of crude, and a strike could upend its exports to China and elsewhere. Concerns about the strength of demand because of China’s flagging economic growth have also hit oil prices.

U.S. technology stocks were also holding up better a day after a market-shaking warning from ASML, a Dutch supplier to the chip industry.

ASML CEO Christophe Fouquet said Tuesday that artificial intelligence continues to offer strong upside potential, but “other market segments are taking longer to recover.” That helped lead to slides of 3.5% for Broadcom and 4.7% for Nvidia on Tuesday. A day afterward, both rose, and Nvidia’s gain of 3.1% was the strongest single force pushing upward on the S&P 500.

Still, Wednesday offered the first chance for Asian stock markets to feel the ripples of ASML’s warning, and chip companies there tumbled.

Japan’s Nikkei 225 fell 1.8% as chip maker Tokyo Electron sank 9.2% and Lasertec Corp., which makes equipment to inspect chips, lost 13.4%.

Stock indexes were mixed across the rest of Asia and Europe. In London, the FTSE 100 rose 1% after the government reported U.K. inflation eased in September to its lowest level in more than three years. That reinforced expectations that the Bank of England will cut interest rates at its next policy meeting.

In the United States, the Federal Reserve has also already begun cutting interest rates following years of keeping them high in hopes of slowing the economy enough to stifle high inflation.

With inflation finally seeming to be heading toward the Fed’s 2% target, the central bank is widening its focus to include keeping the economy humming. Recent reports showing the U.S. economy remains stronger than expected have raised optimism that the Fed can pull off a perfect landing where it gets inflation down without causing a recession that many had thought would be necessary.

Such optimism, along with hopes for increased stimulus for China’s flagging economy, caused the biggest jump in global growth expectations since May 2020 in a survey of global fund managers by Bank of America. The survey also showed the biggest jump in investor optimism since June 2020.

Stocks of smaller companies led the way on Wednesday, an indication that investors are seeing solid growth for the U.S. economy ahead. The Russell 2000 index of smaller stocks jumped 1.6%.

The S&P 500 rose 27.21 points to 5,842.47. The Dow gained 337.28 to 43,077.70, and the Nasdaq composite added 51.49 to 18,367.08.

In the bond market, the yield on the 10-year Treasury fell to 4.01% from 4.03% late Tuesday. The two-year yield, which more closely tracks expectations for what the Fed will do, slipped to 3.93% from 3.95%.

ASX 200 expected to rebound​

The local market looks set to rebound on Thursday following a positive night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 60 points or 0.75% higher this morning.

U.S. stocks rose Wednesday following better-than-expected profit reports from Morgan Stanley, United Airlines and other big companies.

The S&P 500 gained 0.5% to recover much of the slide from its all-time high the day before because of tumbling energy and technology stocks. The Dow Jones Industrial Average rose 337 points, or 0.8%, to set its own record, and the Nasdaq composite added 0.3%.

The S&P 500 rose 27.21 points to 5,842.47. The Dow gained 337.28 to 43,077.70, and the Nasdaq composite added 51.49 to 18,367.08.

 

[bigdog]

Stock market today: Wall Street drifts around its records following latest encouraging economic data

U.S. stocks drifted around their record heights following the latest signals that the U.S. economy continues to hum.

apnews.com

Wall Street drifts around its records following latest encouraging economic data​

By STAN CHOE
Updated 7:29 AM GMT+11, October 18, 2024

NEW YORK (AP) — U.S. stocks drifted around their record heights Thursday following the latest signals that the U.S. economy continues to hum.

The S&P 500 finished virtually unchanged after flirting with its all-time high for much of the day. The Dow Jones Industrial Average added 161 points, or 0.4%, to its own record set the day before, while the Nasdaq composite was close to flat.

Nvidia and other companies in the chip industry were some of the market’s strongest after global heavyweight Taiwan Semiconductor Manufacturing Co. reported bigger profit for the latest quarter than analysts expected. TSMC credited strong demand related to smartphones and artificial intelligence, and its stock that trades in the United States jumped 9.8%.

It was a sharp turnaround from earlier in the week when a warning from a major Dutch supplier to the chip industry, ASML, sent stocks sinking across the industry. Nvidia’s gain of 0.9% was Thursday’s strongest single force pushing upward on the S&P 500.

But a 1.4% slide for Google’s parent company, Alphabet, and a 10.6% tumble for Elevance Health helped keep stock indexes in check.

In the bond market, Treasury yields rose following the latest encouraging reports on the U.S. economy.

U.S. retailers made more in sales in September than in August, and underlying growth trends within the data were better than economists expected. The strength was “all the more impressive in the face of stretched household finances, particularly among lower-income shoppers, and pre-election jitters,” according to Gary Schlossberg, market strategist at Wells Fargo Investment Institute.

A separate report, meanwhile, said fewer U.S. workers applied for unemployment benefits last week, a signal that layoffs nationwide are relatively low and aren’t damaging the job market.

Such data bolster the hope that has sent U.S. stocks to records: The economy could make a perfect escape from the worst inflation in generations, one that ends without a recession that many investors had seen as nearly inevitable. And with the Federal Reserve now cutting interest rates to keep the economy humming, the expectation among optimists is that stocks can rise even further.

Critics, meanwhile, warn stock prices look too expensive given how much faster they’ve climbed than profits for companies.

Lower interest rates can ease the brakes off the economy, boost prices for investments and make borrowing bills less costly for households and businesses. And rates are heading lower around the world, with only a couple exceptions.

The European Central Bank on Thursday cut its main interest rate by a quarter of a percentage point. That helped send stock indexes higher by 1.2% in France and 0.8% in Germany. They halted a run of losses that started the day in Asian stock markets, where Japan’s Nikkei 225 fell 0.7% and Hong Kong’s Hang Seng dropped 1%.

On Wall Street, insurer Travelers was the biggest reason for the Dow’s setting another record. It jumped 9% after reporting stronger profit and revenue for the latest quarter than analysts expected. Higher income made from its investments and elsewhere helped cover greater losses due to Hurricane Helene and severe wind and hail storms in multiple states.

Blackstone also pushed upward on indexes after the investor in real estate, hedge funds and other alternative investments reported stronger profit than expected. It climbed 6.3% after CEO Stephen Schwarzman said it’s seeing broad-based acceleration across its businesses.

They helped offset Elevance Health’s tumble after it reported weaker profit for the latest quarter than expected. The insurer also cut its forecast for profit for the full year, saying it was dealing with a “timing mismatch” between Medicaid rates and higher claims from customers.

CSX fell 6.7% after falling short of analysts’ profit expectations for the latest quarter. The railroad also expects only modest volume growth the rest of the year as the Southeast rebuilds after two major hurricanes.

All told, the S&P 500 slipped 1.00, or less than 0.1%, to 5,841.47. The Dow gained 161.35 points, or 0.4%, to 43,239.05, and the Nasdaq composite added 6.53, or less than 0.1%, to 18,373.61.

In the bond market, the yield on the 10-year Treasury rose to 4.09% from 4.02% late Wednesday. The two-year Treasury yield, which moves more closely with expectations for action by the Fed, rose to 3.98% from 3.94%.

All the strong recent reports on the U.S. economy have forced traders to abandon bets that the Fed could cut its main interest rate by another half a percentage point in November. Instead, they’re largely betting the Fed will move forward with a traditional-sized cut of a quarter of a percentage point, according to data from CME Group.

That shift in expectations has helped push Treasury yields higher.

ASX 200 expected to fall​

The Australian share market looks set to fall on Friday despite a relatively good session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open 27 points or 0.3% lower this morning.

U.S. stocks drifted around their record heights Thursday following the latest signals that the U.S. economy continues to hum.

The S&P 500 finished virtually unchanged after flirting with its all-time high for much of the day. The Dow Jones Industrial Average added 161 points, or 0.4%, to its own record set the day before, while the Nasdaq composite was close to flat.

All told, the S&P 500 slipped 1.00, or less than 0.1%, to 5,841.47. The Dow gained 161.35 points, or 0.4%, to 43,239.05, and the Nasdaq composite added 6.53, or less than 0.1%, to 18,373.61.